EEE Sept 2015 Assignment (Revised)
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ENGINEERING ECONOMIC AND ENTREPRENEURSHIP (GBB/GCB 3173) SEPTEMBER 2015 SEMESTER – ASSIGNMENT TO BE SUBMITTED BY 5.00 PM, MONDAY 21 OCTOBER 2015 NAME: ID. NO.: PROGRAM: 1. ABC Sdn. Bhd. has limited financial resources. It wants to bid on one of the following project which each has a 10-year life span. Which project it should bid on if the interest rate is 8% per year? Show your calculation and your choice of the measure of worth. Project A A fixed-price contract with a large developer, resulting in a stable income of RM250,000 per year in years 1 through 3, and RM200,000 per year for the rest of the project s life span. ’ Project B An income of RM300,000 per year, starting 3 years from now until the end of the project s life span. ’ [14 marks] 2. Determine the number of times interest would be compounded in 6 months from the interest statements (a) 18% per year compounded monthly, (b) 1% per month, and (c) 2% per quarter [6 marks]
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Transcript of EEE Sept 2015 Assignment (Revised)
ENGINEERING ECONOMIC AND ENTREPRENEURSHIP (GBB/GCB 3173)SEPTEMBER 2015 SEMESTER – ASSIGNMENTTO BE SUBMITTED BY 5.00 PM, MONDAY 21 OCTOBER 2015
NAME: ID. NO.: PROGRAM:
1. ABC Sdn. Bhd. has limited financial resources. It wants to bid on one of the following project which each has a 10-year life span. Which project it should bid on if the interest rate is 8% per year? Show your calculation and your choice of the measure of worth.
Project A
A fixed-price contract with a large developer, resulting in a stable income of RM250,000 per year in years 1 through 3, and RM200,000 per year for the rest of the project’s life span.
Project B
An income of RM300,000 per year, starting 3 years from now until the end of the project’s life span.
[14 marks]
2. Determine the number of times interest would be compounded in 6 months from the interest statements (a) 18% per year compounded monthly, (b) 1% per month, and (c) 2% per quarter
[6 marks]
